Submitted by: Submitted by Abhi441
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Category: Business and Industry
Date Submitted: 09/16/2015 08:07 AM
Analyze
The
Impact of Liberalizing
Forex Regulations
On
Improving Exports
By
Abhishek Ghosh
BIMTECH, BHUBANESWAR
Foreign Exchange Market
The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. In terms of volume of trading, it is by far the largest market in the world.[1] The main participants in this market are the larger international banks. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies
Foreign Exchange Regulation Act (India)
The Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973 by the government of Indira Gandhi and came into force with effect from January 1, 1974. FERA imposed strict regulations on certain kinds of payments, the dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. The bill was formulated with the aim of regulating payments and foreign exchange.
India
India’s economy is mainly driven by the billion dollar manufacturing sector and the services industries in recent time. The huge workforce in India is highly educated, making it an attractive market for investors. India's foreign exchange reserves touched a record $322 billion, surpassing the previous high of almost $321 billion in September 2011 on the back of Reserve Bank of India's conscious efforts to build a war chest. India has the ninth highest forex reserves with China, Japan and Saudi Arabia leading the chart. But the gap is huge given that China's reserves are in excess of $3.8 trillion -- almost 12 times India's level. Unlike the large foreign exchange holders, India has a significant current account deficit, which is mainly due to imports...